Bitcoin Cash Network Sees Record Hash Rate Spike, But Price Dips

The Bitcoin Cash (BCH) network experienced a dramatic surge in hash rate and block production, signaling significant changes in mining activity.

Data from fork.lol shows the network’s total computing power spiked 188%, surging from 3.55 EH/s to a peak of 9.21 EH/s. This sudden boost indicates a notable increase in miner participation or the use of more efficient mining equipment.

The substantial hash rate increase reflects heightened mining activity on the BCH network. This rise in computational power likely stems from more miners joining the network and existing miners upgrading their hardware. The spike suggests miners are finding the BCH network increasingly attractive, potentially due to improved profitability or advancements in mining technology.

The surge in hash rate led to significant fluctuations in BCH’s block production rate. Early on July 3, the network was producing five blocks per hour. However, as the hash rate peaked, block output soared to 17.5 blocks per hour before falling back to 11.5 blocks per hour, suggesting an adjustment to a more sustainable level.

These changes in block production highlight the dynamic nature of BCH mining. The initial boost in block output correlates with the surge in hash rate, as greater computational power allows for faster transaction processing. The subsequent decline to 11.5 blocks per hour indicates the network’s difficulty adjustment mechanism is maintaining stable block times.

Despite the increased hash rate and block production, the BCH price has declined. At press time, BCH was trading at $370.55, a 4.4% decrease from the previous day’s high. The Relative Strength Index (RSI) stands at 37.01, suggesting BCH is nearing oversold territory. This could present a buying opportunity for investors, even as the network strengthens.